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TAL(TAL) - 2024 Q3 - Quarterly Report
TALTAL(TAL)2024-01-25 16:00
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Revenue and Profit - Net revenues for Q3 FY2024 increased by 60.5% to 373.5millioncomparedto373.5 million compared to 232.7 million in Q3 FY2023[2][6] - Net revenues for the first nine months of FY2024 increased by 41.3% to 1,060.9millioncomparedto1,060.9 million compared to 750.8 million in the same period of FY2023[3][21] - Gross profit for Q3 FY2024 increased by 54.4% to 200.3millioncomparedto200.3 million compared to 129.7 million in Q3 FY2023[12] - Net revenues for the nine months ended November 30, 2023, were 1,060,877thousand,comparedto1,060,877 thousand, compared to 750,786 thousand for the same period in 2022[43] - Gross profit for the nine months ended November 30, 2023, increased to 578,802thousandfrom578,802 thousand from 442,141 thousand in 2022[43] Net Income and Loss - Non-GAAP net loss attributable to TAL for Q3 FY2024 decreased by 91.6% to 1.9millioncomparedto1.9 million compared to 23.2 million in Q3 FY2023[4] - Non-GAAP net income attributable to TAL for the first nine months of FY2024 was 37.3millioncomparedtoanetlossof37.3 million compared to a net loss of 14.0 million in the same period of FY2023[5][31] - Net loss for the nine months ended November 30, 2023, was 31,466thousand,comparedtoanetlossof31,466 thousand, compared to a net loss of 95,386 thousand in 2022[43] - Non-GAAP net income attributable to TAL Education Group for the nine months ended November 30, 2023 was 37,316thousand,comparedtoanetlossof37,316 thousand, compared to a net loss of (13,950) thousand in the same period in 2022[46] Cash and Investments - Cash, cash equivalents, and short-term investments totaled 3,167.6millionasofNovember30,2023[2]−NetcashprovidedbyoperatingactivitiesforQ3FY2024was3,167.6 million as of November 30, 2023[2] - Net cash provided by operating activities for Q3 FY2024 was 247.1 million[19] - The company's cash and cash equivalents increased from 2,021,927thousandto2,021,927 thousand to 2,193,387 thousand from February 28, 2023, to November 30, 2023[42] - Net cash provided by operating activities for the nine months ended November 30, 2023, was 329,918thousand,asignificantincreasefrom329,918 thousand, a significant increase from 48,319 thousand in 2022[45] - Net cash provided by/(used in) investing activities for the nine months ended November 30, 2023, was 133,955thousand,comparedto133,955 thousand, compared to (324,778) thousand in 2022[45] - Net cash (used in)/provided by financing activities for the nine months ended November 30, 2023, was (233,301)thousand,comparedto(233,301) thousand, compared to (66,235) thousand in 2022[45] - Cash, cash equivalents, and restricted cash at the end of the period on November 30, 2023, were 2,522,368thousand,upfrom2,522,368 thousand, up from 2,308,232 thousand at the end of 2022[45] Expenses - Selling and marketing expenses for Q3 FY2024 increased by 73.3% to 122.0millioncomparedto122.0 million compared to 70.4 million in Q3 FY2023[9] - Total operating expenses for the nine months ended November 30, 2023, were 648,609thousand,upfrom648,609 thousand, up from 510,152 thousand in 2022[43] - Non-GAAP selling and marketing expenses for the nine months ended November 30, 2023 were 316,782thousand,upfrom316,782 thousand, up from 185,510 thousand in the same period in 2022[46] - Non-GAAP general and administrative expenses for the three months ended November 30, 2023 were 96,734thousand,comparedto96,734 thousand, compared to 74,816 thousand for the same period in 2022[46] - Non-GAAP operating costs and expenses for the nine months ended November 30, 2023 were 1,062,287thousand,upfrom1,062,287 thousand, up from 736,552 thousand in the same period in 2022[46] Deferred Revenue - Deferred revenue as of November 30, 2023, was 507.7millioncomparedto507.7 million compared to 237.4 million as of February 28, 2023[20] - The company's deferred revenue-current increased from 234,889thousandto234,889 thousand to 482,368 thousand from February 28, 2023, to November 30, 2023[42] Share Repurchase - The company has repurchased 13,385,764 common shares at an aggregate consideration of approximately 233.6millionunderthesharerepurchaseprogram[34]AssetsandLiabilities−Totalcurrentassetsincreasedfrom233.6 million under the share repurchase program[34] Assets and Liabilities - Total current assets increased from 3,468,407 thousand to 3,643,839thousandfromFebruary28,2023,toNovember30,2023[42]−Totalliabilitiesincreasedfrom3,643,839 thousand from February 28, 2023, to November 30, 2023[42] - Total liabilities increased from 903,441 thousand to 1,314,902thousandfromFebruary28,2023,toNovember30,2023[42]−Thecompany′stotalequitydecreasedfrom1,314,902 thousand from February 28, 2023, to November 30, 2023[42] - The company's total equity decreased from 3,820,913 thousand to 3,598,421thousandfromFebruary28,2023,toNovember30,2023[42]−Thecompany′spropertyandequipment,netincreasedfrom3,598,421 thousand from February 28, 2023, to November 30, 2023[42] - The company's property and equipment, net increased from 288,877 thousand to 376,101thousandfromFebruary28,2023,toNovember30,2023[42]−Thecompany′soperatingleaseright−of−useassetsincreasedfrom376,101 thousand from February 28, 2023, to November 30, 2023[42] - The company's operating lease right-of-use assets increased from 149,002 thousand to 207,115thousandfromFebruary28,2023,toNovember30,2023[42]−Thecompany′sinventoryincreasedfrom207,115 thousand from February 28, 2023, to November 30, 2023[42] - The company's inventory increased from 39,002 thousand to 59,013thousandfromFebruary28,2023,toNovember30,2023[42]−Thecompany′sprepaidexpensesandothercurrentassetsincreasedfrom59,013 thousand from February 28, 2023, to November 30, 2023[42] - The company's prepaid expenses and other current assets increased from 125,486 thousand to 182,323thousandfromFebruary28,2023,toNovember30,2023[42]Non−GAAPMetrics−Non−GAAPcostofrevenuesforthethreemonthsendedNovember30,2023was182,323 thousand from February 28, 2023, to November 30, 2023[42] Non-GAAP Metrics - Non-GAAP cost of revenues for the three months ended November 30, 2023 was 170,681 thousand, compared to 99,406thousandforthesameperiodin2022[46]−Non−GAAPlossfromoperationsforthethreemonthsendedNovember30,2023was99,406 thousand for the same period in 2022[46] - Non-GAAP loss from operations for the three months ended November 30, 2023 was (10,184) thousand, compared to (4,540)thousandforthesameperiodin2022[46]−BasicNon−GAAPnetincomeperADSfortheninemonthsendedNovember30,2023was(4,540) thousand for the same period in 2022[46] - Basic Non-GAAP net income per ADS for the nine months ended November 30, 2023 was 0.06, compared to a loss of (0.02)inthesameperiodin2022[46]−DilutedNon−GAAPnetincomeperADSfortheninemonthsendedNovember30,2023was(0.02) in the same period in 2022[46] - Diluted Non-GAAP net income per ADS for the nine months ended November 30, 2023 was 0.06, compared to a loss of (0.02)inthesameperiodin2022[46]−ADSsusedincalculatingNon−GAAPnetincomeperADSfortheninemonthsendedNovember30,2023were622,332,267,comparedto638,312,472inthesameperiodin2022[46]ComprehensiveLossandGovernmentSubsidies−ComprehensivelossattributabletoTALEducationGroupfortheninemonthsendedNovember30,2023,was(0.02) in the same period in 2022[46] - ADSs used in calculating Non-GAAP net income per ADS for the nine months ended November 30, 2023 were 622,332,267, compared to 638,312,472 in the same period in 2022[46] Comprehensive Loss and Government Subsidies - Comprehensive loss attributable to TAL Education Group for the nine months ended November 30, 2023, was 58,061 thousand, compared to 240,930thousandin2022[44]−GovernmentsubsidiesfortheninemonthsendedNovember30,2023,were240,930 thousand in 2022[44] - Government subsidies for the nine months ended November 30, 2023, were 11,639 thousand, down from 21,697thousandin2022[43]EarningsPerShare−BasicanddilutednetlossperADSforQ3FY2024wereboth21,697 thousand in 2022[43] Earnings Per Share - Basic and diluted net loss per ADS for Q3 FY2024 were both 0.04[18]